throbber

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`UNITED STATES OF AMERICA
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`BEFORE THE FEDERAL TRADE COMMISSION
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`1923133
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`COMMISSIONERS:
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`In the Matter of
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`FLO HEALTH, INC.
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`Joseph J. Simons, Chairman
`Noah Joshua Phillips
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`Rohit Chopra
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`Rebecca Kelly Slaughter
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`Christine S. Wilson
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`DOCKET NO.
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`COMPLAINT
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`The Federal Trade Commission (“FTC”), having reason to believe that Flo Health, Inc., a
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`corporation (“Respondent”), has violated the provisions of the Federal Trade Commission Act,
`and it appearing to the Commission that this proceeding is in the public interest, alleges:
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`Respondent Flo Health, Inc. (“Flo Health”) is a Delaware corporation with its principal
`1.
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`office or place of business at 1013 Centre Road, Suite 403-B, Wilmington, Delaware 19805.
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`Respondent has developed, advertised, offered for sale, sold, and distributed the Flo
`2.
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`Period & Ovulation Tracker, a mobile application (“app”) powered by artificial intelligence that
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`functions as an ovulation calendar, period tracker, and pregnancy guide (“Flo App”).
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`Millions of women use the Flo App, giving Respondent details of their menstruations and
`3.
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`gynecological health on the promise that the app will help predict ovulation and aid in pregnancy
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`and childbirth. These users trust Respondent with intimate details of their reproductive health
`because Respondent repeatedly promised to protect the information and keep it secret. Indeed,
`Respondent’s privacy policies stated, time and again, that Respondent would not share users’
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`health details with anyone.
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`In fact, beginning in 2016, Respondent handed users’ health information out to numerous
`4.
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`third parties, including Google, LLC (“Google”); Google’s separate marketing service, Fabric
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`(“Fabric”); Facebook, Inc., through its Facebook Analytics tool (“Facebook”); marketing firm
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`AppsFlyer, Inc. (“AppsFlyer”); and analytics firm Flurry, Inc. (“Flurry”). And Respondent took
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`no action to limit what these companies could do with the users’ information. Rather, they
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`merely agreed to each company’s standard terms of service. By doing so, Respondent gave these
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`third parties the ability to use Flo App users’ personal health information expansively, including
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`for advertising.
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`1
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`Respondent shared women’s personal health information with these third parties for
`5.
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`years, while at the same time promising them privacy. It was not until February 2019, when the
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`Wall Street Journal revealed the practice, that Respondent halted sharing the data. Indeed,
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`Respondent stopped sharing users’ health information with Facebook the day after the exposé.
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`Upon learning that Respondent had turned some data related to their menstruations,
`6.
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`pregnancies, and childbirths over to these third parties, hundreds of users wrote to Respondent,
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`stating that they were “outraged,” “incredibly upset,” “disturbed,” “appalled,” and “very angry.”
`Indeed, they felt “victimized” and “violated” by Respondent’s actions.
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`The acts and practices of Respondent alleged in this complaint have been in or affecting
`7.
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`commerce, as “commerce” is defined in Section 4 of the Federal Trade Commission Act.
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`Flo App
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`Since at least 2016, Respondent has made the Flo App available to users for free
`8.
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`download from the Apple App Store and the Google Play Store. In the product description
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`available on the Apple App Store, Respondent describes the Flo App as “a smart and simple
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`period tracker, helpful pregnancy week by week app, accurate ovulation and fertility calendar
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`and PMS symptoms tracker for women all over the world.”
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`The Flo App is one of the most popular health and fitness apps available to consumers.
`9.
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`Since 2016, more than 100 million users have downloaded the Flo App, including more than 16
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`million users across the United States and more than 19 million users in the European Union
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`(“EU”) and Switzerland. In 2019, the Flo App was the most downloaded health and fitness app
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`in the Apple App store, and was the “App of the Day” in the Apple App Store in over 30
`countries.
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`During the relevant time period, Respondent contracted with dozens of third-party firms
`10.
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`to provide, among other things, various marketing and analytics services in connection with the
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`Flo App. These firms included Facebook’s analytics division, Google’s analytics division,
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`Fabric, AppsFlyer, and Flurry. Respondent did not contractually limit how these third parties
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`could use data they received from the Flo App. In fact, the Terms of Service governing the
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`agreements permitted the third parties to use the data for their own purposes.
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`Respondent encourages women to input vast quantities of health information into the Flo
`11.
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`App: “Log your menstruation days in a handy period calendar, ovulation and fertility tracker,
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`schedule menstrual cycle reminders, record moods and PMS symptoms, use a due date
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`calculator, follow a pregnancy calendar ....” By doing so, Respondent tells users, you can “take
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`full control of your health.”
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`By encouraging millions of women to input extensive information about their bodies and
`12.
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`mental and physical health, Respondent has collected personal information about consumers,
`including name, email address, date of birth, place of residence, dates of menstrual cycles, when
`pregnancies started and ended, menstrual and pregnancy-related symptoms, weight, and
`temperature.
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`2
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`Respondent’s Repeated Deceptive Statements to Flo App Users About Health Data
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`Between 2017 and 2019, Respondent repeatedly promised users that the Flo App would
`13.
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`keep their health data private, and that Respondent would only use Flo App users’ data to
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`provide the Flo App’s services. Many users entrusted Respondent with their health information
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`in part because they believed that Respondent would treat it according to Respondent’s privacy
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`policies.
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`Specifically, in privacy policies in effect between August 28, 2017 and February 19,
`14.
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`2019, Respondent explained that it “may share certain” personal data with third parties, but only
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`for purposes of operating and servicing the Flo App. The privacy policies defined “personal
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`data” broadly to include “information about your health.” However, the privacy policies then
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`asserted that any information shared with third parties “exclud[ed] information regarding your
`marked cycles, pregnancy, symptoms, notes and other information that is entered by you and
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`that you do not elect to share.” (emphasis added).
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`In the privacy policies described in Paragraph 14, Respondent also promised that third
`15.
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`parties could not use Flo App users’ personal information “for any other purpose except to
`provide services in connection with the App.”
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`In addition to stating that Respondent would not share “information regarding your
`16.
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`marked cycles, pregnancy, [or] symptoms ...” with any third parties (as described in Paragraph
`14), privacy policies in effect between May 28, 2018 and February 19, 2019 specifically
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`promised that Respondent would not disclose “any data related to health” to either AppsFlyer or
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`Flurry.
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`A.
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`B.
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`“AppsFlyer is a mobile marketing platform. We may share certain non-
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`identifiable information about you and some Personal Data (but never any data
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`related to health) in order to carry out marketing activities and provide you
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`better and more targeted, tailor-made service.” (emphasis added)
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`“We may share certain non-identifiable information about you and some Personal
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`Data (but never any data related to health) with Flurry.” (emphasis added)
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`The privacy policies described in Paragraph 16 also singled out Facebook, Google, and
`17.
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`Fabric, claiming that these third parties would only receive “non-personally identifiable
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`information,” “Personal Data like device identifiers,” or “device identifiers.” Specifically,
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`Respondent’s privacy policies stated as follows:
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`A.
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`B.
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`“We use Facebook Analytics and Google Analytics tools to track installs of our
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`App. Normally, Facebook and Google collect only non-personally identifiable
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`information, though some Personal Data like device identifiers may be
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`transferred to Facebook ....” (emphasis added).
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`“Fabric may use device identifiers that are stored on your mobile device and
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`allow us to analyze your use of the App in order to improve our app feature [sic].”
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`(emphasis added).
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`3
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`For Years, Respondent Disclosed Health Data About Millions of App Users to
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`Facebook, Google, and Other Third Parties
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`Like most app developers, Respondent tracks “Standard App Events,” records of routine
`18.
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`app functions, such as launching or closing the app, as well as “Custom Apps Events,” records of
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`user-app interactions unique to the Flo App. For example, when a user enters menstruation
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`dates, Respondent records the user’s interaction with that feature as a Custom App Event.
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`Respondent analyzes Custom App Events to improve the Flo App’s functionality and identify
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`which features are likely to interest new users.
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`Respondent gave each Custom App Event a descriptive title. For example, when a user
`19.
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`enters the week of her pregnancy, Respondent records the Custom App Event
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`“R_PREGNANCY_WEEK_CHOSEN.” When a user selects a feature to receive menstruation
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`reminders in the “wanting to get pregnant branch” of the app, Respondent records the Custom
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`App Event “P_ACCEPT_PUSHES_PERIOD.” Consequently, many of Respondent’s Custom
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`App Events convey information about users’ menstruation, fertility, or pregnancies.
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`Despite its repeated representations between 2017 and 2019 that it would keep users’
`20.
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`health data secret, Respondent disclosed health information to various third parties. In fact, as
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`far back as June 2016, Respondent integrated into the Flo App software development tools,
`known as software development kits (“SDKs”), from the numerous third-party marketing and
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`analytics firms mentioned above, including Facebook, Flurry, Fabric, AppsFlyer, and Google.
`These SDKs gathered the unique advertising or device identifiers and Custom App Events of the
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`millions of Flo App users. By including sensitive health information in the titles of the Custom
`App Events, Respondent conveyed the health information of millions of users to these third
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`parties for years. This directly contradicted Respondent’s statements in its privacy policies that
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`it would not divulge such information. Specifically, Respondent disclosed Custom App Event
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`information to:
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`A.
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`B.
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`C.
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`D.
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`E.
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`Facebook from June 2016 to February 2019;
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`Flurry from June 2016 to February 2019;
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`Fabric from November 2016 to February 2019;
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`AppsFlyer from May 2018 to February 2019; and
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`Google from September 2018 to February 2019.
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`Besides breaking promises to Flo App users, Respondent’s disclosures violated several of
`21.
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`the third parties’ own terms of service or use—terms to which Respondent had agreed:
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`A.
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`Facebook’s Business Tools Terms stated: “You will not share Customer Data
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`with us that you know or reasonably should know ... includes health, financial
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`information, or other categories of sensitive information (including any
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`information defined as sensitive under applicable law).” (emphasis added).
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`4
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`B.
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`AppsFlyer’s Terms of Use stated: “AppsFlyer strictly prohibits you from
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`using the Services to collect or otherwise enable the collection of any
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`Restricted Data. You hereby warrant that you shall not configure the Codes or
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`Services to collect any Restricted Data through the Services.” The Terms of Use
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`defined “Restricted Data” to include “any health information.” (emphasis
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`added).
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`Despite representing in the privacy policies described in Paragraphs 14 and 15 that it
`22.
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`would restrict how third parties could use Flo App users’ personal data, Respondent merely
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`agreed to these third parties’ stock terms of service, several of which permitted the third party to
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`use any information obtained from Flo App users for the third party’s own purposes, including,
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`in certain cases, for advertising and product improvement:
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`A.
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`B.
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`C.
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`D.
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`Facebook’s Business Tools Terms stated: “We use [aggregated] Event Data to
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`personalize the features and content (including ads and recommendations) we
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`show people on and off our Facebook Company Products .... We may also use
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`Event Data ... for research and development purposes, and to ... improve the
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`Facebook Company Products.” That “Event Data” includes Custom App Events.
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`Google Analytics’s Terms of Service stated: “Google and its wholly owned
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`subsidiaries may retain and use ... information collected in [Flo Health’s] use of
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`the service.”
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`AppsFlyer’s Terms of Use stated: “You hereby allow AppsFlyer to collect, store,
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`use and process Customer Data,” where “Customer Data” was defined to include
`“data concerning the characteristics and activities” of app users.
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`The Fabric Software and Services Agreement stated: “[Flo Health] acknowledges
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`and agrees that Google [Fabric] may use Usage Data for its own business
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`purposes,” where “Usage Data” was defined to mean “all information, data and
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`other content, not including any [identifying data], received by Google related to
`[Flo Health]’s use of the Fabric Technology.
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`As a result, at least one of these third parties (Facebook) used Flo App event data (which
`23.
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`Facebook did not know included users’ personal and health data) for its own purposes, including
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`its own research and development purposes.
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`On February 22, 2019, the Wall Street Journal reported that it was able to intercept
`24.
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`unencrypted identifying health information transmitted by the Flo App to Facebook. The Wall
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`Street Journal reported that this information included a unique advertising identifier, the user’s
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`intention to get pregnant, and when the user was having her period.
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`Following publication of the Wall Street Journal’s story, Respondent received more than
`25.
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`300 complaints from Flo App users about the unauthorized disclosures of health information to
`Facebook. For example, users stated:
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`A.
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`“I’m absolutely [sic] disgusted at this invasion of my most personal information.”
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`5
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` “This is private personal data and I feel disgusted that you are now making this
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` data available to third parties.”
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` B.
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` C.
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` “Why would you EVER think it is ok to share that personal, private information
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` with a third [sic] party?”
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` 26. More than 100 Flo App users asked Respondent to delete their accounts and/or data or
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` told the company they were deleting, or would delete, the Flo App.
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` Respondent’s Violation of the Privacy Shield Principles
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` Respondent has been a participant in the EU-U.S. Privacy Shield (“Privacy Shield”) and
` 27.
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`the U.S.-Swiss Privacy Shield framework since August 12, 2018. In privacy policies effective
`from August 6, 2018 through the present, Respondent has represented that it participates in the
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`EU-U.S. Privacy Shield framework and the U.S.-Swiss Privacy Shield framework. Specifically,
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`since August 6, 2018, Respondent’s privacy policies have stated: “[W]e comply with the EU-
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`U.S. Privacy Shield Framework and Swiss-U.S. Privacy Shield Framework as set forth by the
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`U.S. Department of Commerce regarding the collection, use, and retention of personal
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`information transferred from the EU and Switzerland to the United States. We have certified to
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`the Department of Commerce that we adhere to the Privacy Shield Principles.”
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`The Department of Commerce (“Commerce”) and the European Commission negotiated
`28.
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`the Privacy Shield to provide a mechanism for companies to transfer personal data from the
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`European Union to the United States in a manner consistent with the requirements of European
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`Union law on data protection. Enacted in 1995, the European Union Data Protection Directive
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`(the “Directive”) set forth European Union requirements for the protection of personal data.
`Among other things, it required European Union Member States to implement legislation that
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`prohibits the transfer of personal data outside the European Union, with exceptions, unless the
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`European Commission has made a determination that the recipient jurisdiction’s laws ensure the
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`protection of such personal data. This determination commonly referred to as meeting the
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`European Union’s “Adequacy Standard.”
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`The European Union has since enacted a new data protection regime, the General Data
`29.
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`Protection Regulation (“GDPR”), which took effect as of May 25, 2018, and contains similar
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`provisions on data transfers. The GDPR explicitly recognizes European Commission adequacy
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`determinations in effect as of that date. Unlike the Directive, the GDPR is directly applicable
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`and generally does not require member states to enact implementing legislation.
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`To satisfy the European Union Adequacy Standard for certain commercial transfers,
`30.
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`Commerce and the European Commission negotiated the Privacy Shield, which the European
`Commission determined was adequate by written decision in July 2016, and took effect August
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`1, 2016. Thus, the Privacy Shield allows for the lawful transfer of personal data from the
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`European Union to those companies in the United States that participate in Privacy Shield.
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`The Swiss-U.S. Privacy Shield Framework is identical to the EU-U.S. Privacy Shield
`31.
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`Framework and is consistent with the requirements of the Swiss Federal Act on Data Protection.
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`6
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`To join the EU-U.S. and/or Swiss-U.S. Privacy Shield Framework, a company must self-
`32.
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`certify to Commerce that it complies with the Privacy Shield Principles, and to related
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`requirements that have been deemed to meet the European Union’s Adequacy Standard.
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`Participating companies must annually re-certify their compliance.
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`The Privacy Shield expressly provides that, while decisions by organizations to “enter the
`33.
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`Privacy Shield are entirely voluntary, effective compliance is compulsory: organizations that
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`self-certify to the Department and publicly declare their commitment to adhere to the Principles
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`must comply fully with the Principles.” (emphasis added).
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`Companies under the jurisdiction of the FTC are eligible to join the EU-U.S. and/or
`34.
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`Swiss-U.S. Privacy Shield Framework. Both frameworks warn companies that claim to have
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`self-certified to the Privacy Shield Principles that failure to comply or otherwise to “fully
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`implement” the Privacy Shield Principles “is enforceable under Section 5 of the Federal Trade
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`Commission Act.”
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`Respondent’s Failure to Provide Adequate Notice for
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`Third-Party Use of Health Information for
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`Advertising and Other Purposes
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`Privacy Shield Principle 1, “Notice,” requires organizations to inform individuals about,
`35.
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`among other things, “the type or identity of third parties to which it discloses personal
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`information, and the purposes for which it does so.” Principle 1(a)(vi). It provides further:
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`“This notice must be provided in clear and conspicuous language when individuals are first
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`asked to provide personal information to the organization or as soon thereafter as is practicable,
`but in any event before the organization uses such information for a purpose other than that for
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`which it was originally collected or processed by the transferring organization or discloses it for
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`the first time to a third party.” Principle 1(b).
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`Respondent did not provide notice in clear and conspicuous language about the purposes
`36.
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`for which it disclosed health information to third parties. When users in the European Union,
`Switzerland, Norway, Lichtenstein, and Iceland opened the Flo App for the first time, they were
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`greeted by a “Welcome” screen that provided that by using the Flo App, the user consented to
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`Respondent’s aforementioned privacy policies and terms of use.
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`However, as described in Paragraphs 20-23, Respondent disclosed users’ health
`37.
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`information to numerous third parties authorized to use the data for advertising (among other
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`uses). At no point did Respondent inform users that their health data could be used for these
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`third parties’ purposes.
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`Respondent’s Failure to Provide Adequate Choice
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`for Third-Party Use of Health Information for
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`Advertising, Product Improvement, and Other Purposes
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`Privacy Shield Principle 2, “Choice,” requires organizations to “offer individuals the
`38.
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`opportunity to choose (opt out) whether their personal information is ... to be used for a purpose
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`that is materially different from the purpose(s) for which it was originally collected or
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`subsequently authorized by the individuals.” Principle 2(a).
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`7
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`The Choice Principle specifies further: “Individuals must be provided with clear,
`39.
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`conspicuous, and readily available mechanisms to exercise choice.” Id.
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`This Principle also requires opt-in consent for disclosures of “sensitive information (i.e.,
`40.
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`personal information specifying medical or health conditions ...).” Principle 2(c). Specifically,
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`Principle 2(c) requires that “organizations must obtain affirmative express consent (opt in) from
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`individuals if such information is to be [] disclosed to a third party ...” Id.
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`Respondent did not offer users the opportunity to opt out of whether their personal
`41.
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`information would be used for a materially different purpose than the purposes for which it was
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`originally collected or subsequently authorized. Specifically, Respondent told App users that
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`their health information would only be used to provide the Flo App functions. Respondent did
`not offer Flo App users the opportunity to opt out of the use of their health information by third
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`parties for advertising, product improvement, and other purposes.
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`Respondent did not obtain Flo App users’ affirmative express opt-in consent for
`42.
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`disclosures of health information to third parties, including Facebook, Google, Flurry, Fabric,
`and AppsFlyer. To the contrary, as described in Paragraphs 13-14 and 16, Respondent reassured
`Flo App users that the Flo App would not disclose health information to third parties.
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`Respondent did not offer individuals a clear, conspicuous, and readily available
`43.
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`mechanism to exercise choice. The aforementioned privacy policy provided misleading
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`information, which prevented users from exercising choice.
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`Respondent’s Failure to Provide for
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`Accountability for Onward Transfers
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`Privacy Shield Principle 3, “Accountability for Onward Transfer,” requires organizations
`44.
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`that transfer personal data to a third party acting as an agent to, among other things, “(i) transfer
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`such data only for limited and specified purposes, (ii) ascertain that the agent is obligated to
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`provide at least the same level of privacy protection as is required by the Principles, [and] (iii)
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`take reasonable and appropriate steps to ensure that the agent effectively processes the personal
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`information transferred in a manner consistent with the organization’s obligations under the
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`Principles.” Principle 3(b).
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`To the extent Respondent considered AppsFlyer, Fabric, Facebook, Flurry, and Google to
`45.
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`be its agents, Respondent violated Principle 3 because it did not transfer Flo App users’ health
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`data to third parties acting as Respondent’s agents only for limited and specified purposes. To
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`the contrary, as described in Paragraphs 20 and 22, Respondent transferred health information to
`numerous third parties that Respondent considered its agents under broad contracts that
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`permitted use of the data received for wide-ranging purposes, including the third parties’
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`advertising and product improvement.
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`Respondent also violated Principle 3 because it did not obligate third parties that
`46.
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`Respondent considered its agents to provide the same level of privacy protection as is required
`by the Principles. Specifically, Respondent transferred users’ health information to AppsFlyer,
`Fabric, Facebook, Flurry, and Google, without requiring these third parties to provide the same
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`level of privacy protection for this data as is required by the Principles.
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`8
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`Respondent also violated Principle 3 because it did not take reasonable and appropriate
`47.
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`steps to ensure processing of users’ information consistent with the Principles. Specifically, as
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`described in Paragraph 22, Respondent did not require third parties it considered agents,
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`including Facebook, Google, Fabric, and AppsFlyer, to sign any contract acknowledging that
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`they could or would receive Flo App users’ health information or requiring processing consistent
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`with the sensitivity of this information. To the contrary, as described in Paragraph 21,
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`Respondent agreed to terms of service that specifically prohibited disclosures of health
`information to Facebook and AppsFlyer.
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`As a result, these third parties were not even aware that they had received Flo App users’
`48.
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`health data and, therefore, could not process the data in a manner consistent with its sensitivity.
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`Respondent’s Failure to Abide by
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`the Principle of Purpose Limitation
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`Privacy Shield Principle 5, “Data Integrity and Purpose Limitation,” provides, in part:
`49.
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`
`
`“An organization may not process personal information in a way that is incompatible with the
`
`purposes for which it has been collected or subsequently authorized by the individual.” Principle
`
`
`5(a).
`
`
`Respondent collected health information from Flo App users for the purpose of providing
`50.
`
`
`the Flo App’s functions. By disclosing Flo App users’ health information to third parties under
`
`
`contracts that permitted those third parties to use the data for advertising, product improvement
`
`and other purposes, Respondent processed Flo App users’ health information in a way that was
`
`incompatible with the purposes for which it has been collected.
`
`
`Count I
`
`Privacy Misrepresentation – Disclosures of Health Information
`
`
`
`As described in Paragraphs 13-14 and 16, Respondent represented, directly or indirectly,
`51.
`
`expressly or by implication, that the Flo App would not disclose, without consumers’ consent,
`their health information to third parties in general, and to AppsFlyer and Flurry in particular.
`
`
`
`In fact, as set forth in Paragraph 20, Respondent did disclose consumers’ health
`52.
`
`information to Facebook, Google, Fabric, Flurry, and AppsFlyer. Therefore, the representations
`
`set forth in Paragraph 51 are false or misleading.
`
`
`Count II
`
`Privacy Misrepresentation – Disclosures Beyond Identifiers
`
`
`
`As described in Paragraph 17, Respondent represented, directly or indirectly, expressly or
`53.
`
`
`by implication, that it would only disclose non-personally identifiable information, device
`
`identifiers, and personal data “like device identifiers” to Fabric, Google, and Facebook.
`
`
`
`In fact, as set forth in Paragraph 20, Respondent did not only disclose non-personally
`54.
`
`
`identifiable information, device identifiers, and personal data “like device identifiers” to Fabric,
`Google, and Facebook. Respondent also conveyed users’ health information to Google,
`
`
`
`9
`
`

`

`
`
`Facebook, and Fabric. Therefore, the representations set forth in Paragraph 53 are false or
`
`misleading.
`
`
`Count III
`
`Privacy Misrepresentation – Failure to Limit Third-Party Use
`
`
`
`As described in Paragraphs 14-15, Respondent represented, directly or indirectly,
`55.
`
`expressly or by implication, that third parties could not use Flo App users’ personal information
`
`“for any other purpose except to provide services in connection with the App.”
`
`
`In fact, as set forth in Paragraph 22, third parties could use Flo App users’ personal
`56.
`
`
`information for purposes other than providing services in connection with the app. Respondent
`
`
`entered into agreements with third parties Facebook, Google, AppsFlyer, and Fabric that
`
`
`permitted them to use Flo App users’ personal information for the third parties’ own purposes,
`including for advertising and product improvement. Furthermore, as set forth in Paragraph 23,
`
`
`from June 2016 to February 2019, at least one third party (Facebook) used the Flo App users’
`
`
`personal information for its own purposes, including its own research and development purposes.
`
`Therefore, the representations set forth in Paragraph 55 are false or misleading.
`
`
`Count IV
`
`Misrepresentation Regarding Notice
`
`
`As described in Paragraph 27, Respondent has represented, directly or indirectly,
`57.
`
`
`
`
`expressly or by implication, that it adheres to the Privacy Shield Framework Principles,
`
`
`
`including the principle of Notice.
`
`
`In fact, as described in Paragraphs 36-37, Respondent did not adhere to the Privacy
`58.
`
`
`
`Shield Principle of Notice. Therefore, the representation set forth in Paragraph 57 is false or
`
`
`misleading.
`
`
`Count V
`
`Misrepresentation Regarding Choice
`
`
`As described in Paragraph 27, Respondent has represented, directly or indirectly,
`59.
`
`
`
`
`expressly or by implication, that it adheres to the Privacy Shield Framework Principles,
`
`
`
`including the principle of Choice.
`
`In fact, as described in Paragraphs 41-43, Respondent did not adhere to the Privacy
`60.
`
`
`
`
`Shield Principle of Choice. Therefore, the representation set forth in Paragraph 59 is false or
`
`misleading.
`
`
`Count VI
`
`Misrepresentation Regarding Accountability for Onward Transfers
`
`
`As described in Paragraph 27, Respondent has represented, directly or indirectly,
`61.
`
`
`
`
`expressly or by implication, that it adheres to the Privacy Shield Framework Principles,
`
`
`
`
`including the principle of Accountability for Onward Transfers.
`
`
`
`
`
`10
`
`

`

`
`
`In fact, as described in Paragraphs 45-48, Respondent did not adhere to the Privacy
`62.
`
`
`
`
`Shield Principle of Accountability for Onward Transfers. Therefore, the representation set forth
`
`
`in Paragraph 61 is false or misleading.
`
`
`Count VII
`
`Misrepresentation Regarding Data Integrity and Purpose Limitation
`
`
`As described in Paragraph 27, Respondent has represented, directly or indirectly,
`63.
`
`
`
`
`expressly or by implication, that it adheres to the Privacy Shield Framework Principles,
`
`
`
`including the principle of Data Integrity and Purpose Limitation.
`
`
`
`
`
`In fact, as described in Paragraph 50, Respondent did not adhere to the Privacy Shield
`64.
`
`
`
`
`Principle of Data Integrity and Purpose Limitation. Therefore, the representation set forth in
`
`
`
`
`Paragraph 63 is false or misleading.
`
`
`
`
`Violations of Section 5
`
`
`The acts and practices of Respondent as alleged in this complaint constitute unfair or
`65.
`
`
`
`
`deceptive acts or practices, in or affecting commerce in violation of Section 5(a) of the Federal
`
`
`Trade Commission Act.
`
`
`THEREFORE, the Federal Trade Commission this ___ day of _______ 2020, has issued
`
`
`
`
`
`this complaint against Respondent.
`
`
`
`
`
`By the Commission.
`
`
`April J. Tabor
`
`Acting Secretary
`
`
`SEAL:
`
`
`
`
`
`
`
`11
`
`

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